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To make running your farm operation easier, we have described our most
common agribusiness lending products. We also believe you will find
of value a visit to our Ag Tool Box© as a
resource to your farm operation. Learn more about our payroll services.
AG MORTGAGE LOAN
A loan used to finance the purchase of real estate (or construction). It appears
on your balance sheet as land and improvements (buildings). An
ag mortgage is repaid from net income of the agribusiness on a defined amortization.
TERM LOAN
A secured loan used to finance fixed assets (other than real estate), such as
equipment and cattle.
The term of the loan depends on the life of the asset being financed and the cash
flow of the farm operation.
REVOLVING OR SEASONAL LINE OF CREDIT (LOC)
Generally, a credit arrangement for financing fluctuations in current assets. The
need predominantly results from production changes (timing) that cannot be supported by the internally
generated cash flow of the operation or a seasonal need, like crop inputs. Repayment
is from conversion of non-cash assets to cash, such as cattle and crops.
PERMANENT WORKING CAPITAL
A loan used to finance cash needs. This type of loan is used when the
farm operation's cash disbursements exceed its ability to generate cash internally.
Repayment is from net profits.
BUSINESS OR PERSONAL CHARGE CARD
Apply for a CBB Credit Card today ~ Click Here
A service whereby you, or your agribusiness, can have a charge card line. Repayment is on a monthly basis, with detail
provided on each issued charge card for expense reporting. A grace period (free use
of money) is common on a charge card line.
GOVERNMENT LOAN PROGRAMS
Banks will also utilize government loan program through WHEDA, Farm
Service Agency (FSA), Wisconsin Department of Commerce,
and other specialized programs. The requirements of these programs vary and may
change over time.
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